Arid climate led to the price of rubber rose to a 10-year high

Natural rubber prices in the international market since February this year, rebounding since stabilized, sustained higher. Tokyo Commodity Exchange in July natural rubber futures contracts have all hit the highest level in recent years, with the recent closing price contract reached 189.8 yen / kg, a record since February 1995 has been the highest price.

Lead to a shortage of supply is the primary cause of this situation. Four or five months, Thailand, Indonesia and other major natural rubber producing areas of drought weather led to the emergence of global output, China's main producing areas in Hainan Natural Rubber affect tapping. In June, the continuous rainfall in Southeast Asia has affected the normal tapping operation, leading to further decline in output. According to statistics, by the end of last year's drought weather, Thailand's rubber production this year, down 10%.

Stock fell to an all-time low is also an important factor. So far this year, the world's natural rubber inventory levels continue to show declining trends. According to the Rubber Trade Association of Japan statistics, as of June 10, the Japanese non-rubber warehouse inventories totaled 10,600 tons, representing a May 31 dropped 11,700 tons of 10%. This is the 1963 low. June 24, on the period of natural rubber stock decline accelerated, a total of only 25,500 tons, compared with last year dropped by an average of 80%.

International crude oil prices have a direct impact on the prices of natural rubber market. Since June the international crude oil prices reaching new heights, the recent breakthrough is 60 U.S. dollars / barrel mark, Synthetic push prices rose to 160 cents / kg. Synthetic lead to price increases as a substitute for the natural rubber consumption increase.